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SEC meltdown in the cryptosphere: Ripple and Coinbase take advantage

Thu 31 Aug 2023 ▪ 3 min of reading ▪ by Evans S.
Getting informed Crypto regulation

The ever-changing crypto arena recently witnessed a major victory for Grayscale, marking a significant rout for the SEC. At the heart of this event, two giants of the cryptosphere, Ripple and Coinbase, scan the horizon with renewed confidence.

Crypto: A scale of justice for Ripple and coinbase

Winds of change blow through crypto regulation

The legal battle has been fierce, and the decision of a three-judge panel of the DC Circuit Court of Appeals clearly tilted in favor of Grayscale Investments, leaving the SEC without convincing answers.

The SEC’s reasons for rejecting Bitcoin ETFs proved not only weak, but also exposed a glaring lack of clarity over the classification of cryptos as securities. This regulatory opacity, symbolized by Gary Gensler’s inability to clarify the status of cryptos, demonstrates a worrying wavering for an organization of this stature.

Indignation was not long in coming. John Deaton, a fervent pro-XRP advocate, was quick to express his displeasure at the SEC’s misguided stance, openly questioning Gensler’s strategy. Meanwhile, analyst Scott Melker, nicknamed “The Wolf of All Streets”, predicts a favorable outcome for Coinbase against the SEC, supporting Deaton’s vision.

SEC in crypto meltdown: Ripple and Coinbase with galvanized confidence

The wave of optimism in crypto is not limited to these players. Ripple executives, including General Counsel Stuart Alderony and CEO Brad Garlinghouse, have openly criticized the SEC for its actions, which are often seen as arbitrary and devoid of legal basis. Alderony didn’t mince his words, calling the agency a “hypocrite” and pointing the finger at its repeated failings in court.

Grayscale’s victory had immediate repercussions on the market. Coinbase’s share price climbed spectacularly, testifying to investor confidence. Legal precedents, such as Grayscale’s, opened a breach, weakening the SEC’s arguments and strengthening the position of crypto companies.

Towards an uncertain future

Today’s victory shapes tomorrow’s landscape. While this SEC defeat may be seen as a thorn removed from the crypto industry’s side, it also raises new questions. How will regulation evolve in the future? Will the dialogue between traditional financial institutions and the crypto sector improve? Only time will tell, but one thing is certain: the cryptosphere continues to challenge, innovate and surprise. What’s more, the trial opposing Ripple to the SEC now seems to be moving in the right direction.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.